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Internet bookmakers should fear US

The arrest in America of one internet betting executive may be dismissed as a one-off case aimed at a particular company with a spicey background. The detention of a second should be viewed as concerted campaign by the authorities to clamp down on what it views as an illegal activity.

One can argue the toss over whether the 1961 Wire Act covers the internet - it was drafted to ban bets taken over the telephone and telegraph - but the actions of the authorities in detaining the chairman of Sportingbet are a clear warning to internet bookmakers to steer clear of US punters.

The big question is not who’s next - assuming any online bookie is unfortunate enough to set foot on American soil - but whether the big virtual casino and poker-room operators such as PartyGaming will be sucked into the net. The industry’s argument that these are games of skill rather than chance and so outside the scope of the Wire Act may have held sway so far. But the comments of Department of Justice officials in the wake of the arrest and indictment of the former BetOnSports chief executive in Dallas seemed pretty clear that any form of internet gambling is seen as illegal.

Such a prohibitionist attitude may sit uneasily alongside the country’s claim to be the land of the free. But just because the majority of the civilised world allows gambling over the internet, doesn’t mean to say America is about to change its stance. The arrest, detention and extradition of so many British businessmen in recent weeks also cocks a snook at the so-called special relationship between the two countries

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